China may levy resource tax of 10% on oil, gas

China's planned resource tax on the sale of oil and gas may be as high as 10 percent, Bloomberg reported Thursday citing the Shanghai Securities News.
The government may levy a tax of 5 percent to 10 percent of sales value, according to an amendment to temporary regulations on the matter, the newspaper reported, without giving details on a timeframe or geographical regions for implementation.
China has proposed a nationwide resource tax to raise funds to develop the poorer western regions, which are rich in oil, gas and coal reserves. The government first introduced a trial tax of 5 percent in Xinjiang Uygur autonomous region in June, which it widened to other western provinces a month later.
Coal will still be taxed by volume rather than price levels and the tax may be raised to between 0.3 yuan and 8 yuan a ton from 0.3 yuan to 5 yuan, the newspaper said, citing the amended rules.
Nationwide introduction of the taxes may be delayed because of inflation concerns, the Shanghai-based newspaper reported, citing unidentified people.
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